Today's heavy options volume in rare-earth magnet company REalloys Inc. (ALOY) suggests that investors may be bullish on ALOY stock ahead of its earnings next week. Investors have been buying and selling out-of-the-money (OTM) puts at $10.00 today for expiry in 37 days (Sept. 18). ALOY is at $12.85 today, up slightly, and well up from a recent trough price of $7.03 on July 24.
However, it's still well below a recent peak of $19.70 on June 22. Ondas (ONDS) Stock Presents a Bold Opportunity for Aggressive Options Traders Marvell Technology (MRVL) Stock Might Offer a Quick Bounce Before Earnings Domino's Pizza Stock Looks Cheap - Short Put Plays Work Here Our exclusive Barchart Brief newsletter is your FREE midday guide to what's moving stocks, sectors, and investor sentiment - delivered right when you need the info most. Investors are pushing ALOY stock higher ahead of earnings set to be released on August 19.
Analysts are expecting a lower earnings per share (EPS) loss of just 5 cents per share, compared to 35 cents last year and -$1.95 last quarter, according to data from Stock Analysis. Investors are keen to find a rare-earth stock that can help the U.S. get ahead of China's stranglehold on rare-earth magnets. The U.S. has set a Jan. 1, 2027, deadline for federal contracts that won't allow China-origin rare-earth materials into U.S. weapons designs, as Marketbeat recently explained.
However, many of these companies, including ALOY, are running at a loss. That means they have had to raise additional capital. For example, REalloys recently raised $100 million in a private equity capital raise on June 26.
The price was $14.25 per share. That could be one reason why investors have been buying these out-of-the-money (OTM) puts today. This unusual volume can be seen in Barchart's Unusual Stock Options Activity Report today.
It shows that over 7,500 put contracts have traded at $10.00 for expiry on Sept. 18. That is over 30 times the prior number of put options outstanding at that price and expiry period. This might imply that buyers of these puts expect that there could be another equity capital raise.
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